...a review of the strategic initiatives taken by The Walt Disney Company relative to organizational and operational adaptations to the changing markets. An explanation of how recent economic trends are influencing the company, strategies Disney has used or could use for adapting to the changing markets. In addition, tactics Disney has implemented or could implement to achieve their strategic goals, the role human resources management plays in helping them achieve the goals, and would I be willing to invest in this company as a mutual fund manager. How Recent Economic Trends Are Influencing Disney. Even though the economy has been in a recession for the past couple years The Walt Disney Company has been doing well and shown continued growth. The company continues to show signs of being a healthy company as indicated by their continued increase in their net income Nelson (2012) “Disney’s income for 2011 and 2010 was $4,807 and $3,963 respectively, which represents a 21.30% increase.” (p. 4). In addition, the company had a net income of $3,307 in 2009, which represents a 19.84% increase for 2010. As shown in Figure A, Disney has shown growth in all areas of its financial statements during the past three years. Over all the company has not been significantly effected by the current economic downtrun and has been able to hold its market share. Strategies Disney Has Used to Adapt to Changing Markets The Walt Disney Company has the capital to allow management to expand the company’s...
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...SHANGHAI DISNEY: MILESTONE JOINT VENTURE Rita Lemoine Southern New Hampshire University Abstract This paper examines the significant collaborative efforts of both a U.S. multi-national corporation, The Walt Disney Company and its foreign socialistic counterpart, the Shanghai Shendi Group, Ltd. negotiation of an Equity International Joint Venture agreement. The paper will disclose the joint venture agreement, the financial structure, and funding arrangements for the construction of the Shanghai Disney Resort. Then a SWOT analysis will demonstrate the strengths, weaknesses, opportunities, and threats that could affect The Disney Company’s operations in China according to current economic, political, and legal policies regarding foreign joint ventures. Finally, an assessment of the cultural differences between the two companies in the form of managerial and leadership styles that could hinder the success of this joint venture. Keywords: Equity International Joint Venture, SWOT analysis, Cultural Dimensions SUMMARY OF THE WALT DISNEY COMPANY The Walt Disney Company, the leading producer of family entertainment for the past nine decades, beginning in October 16, 1923 when Walter Elias Disney “signed a contract with M.J. Winkler to produce” a series of cartoons, the early stages of The Disney Brothers Studios, founded by Walter Elias and Roy O. Disney. (Retrieved from “http://thewaltdisneycompany.com/about-disney/disney-history/1920-01-01--1929-12-31”). The...
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...The Walt Disney Company Financial Accounting Project Progress Report 2 8am M, W, Th Yuli Tang Wei Wang Tianda Xu Rui Zhang Profitability: In 2011, the profit margin of Walt Disney Company was 0.1176(11.76%). Due to the company’s huge net sales value, it shows a solid profit margin for a large company just as Walt Disney. In 2010, the profit margin was 0.1041(10.41%), which was 1.35% lower than 2011. The higher profits margin rate in 2011 indicates that the profit margin will increase in the future. Furthermore, the Walt Disney’s return on equity was 0.129(12.9%) in 2011, and the return on equity was 2.9% higher than the previous year, which showed that the Walt Disney keep steady profitability. Compared to its competitor DreamWorks Animation’s 0.123 profit margin, Walt Disney had lower profit margin that was 0.1041 (Appendix 2D). However, the ROE of DreamWorks Animation was 0.064(6.4%), which was much lower than Walt Disney (Appendix 1A&2A). Thus, Walt Disney made more profits than its competitor. The net income of Walt Disney in 2011 was $ 4,807,000,000, and it net sales was $40,893,000,000 (Appendix 1D). There are huge amount differences between net income and net sales. Because Walt Disney doesn’t have cost of good sold, the main reason is high cost and expense that was $ 33,112,000,000. In addition, income tax and interest expense were other factors determined the discrepancy. Liquidity and Capital Structure: As we know that a quick ratio can measure the...
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...The Walt Disney Company Profile 500 South Buena Vista Street Burbank, CA 91521 United States 818-560-1000 http://www.thewaltdisneycompany.com Sector: Services Industry: Entertainment - Diversified Full-Time Employees: 195,000 Mission “The mission of The Walt Disney Company is to be one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services, and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.” Values • Creative • Innovation • Entertainment • Information • Visionaries • Latest technology • “World’s largest media company” • Leadership • Vision • Commitment to excellence • “World’s leading providers of...
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...Case 20: The Walt Disney Company Introduction The Walt Disney Co. is an enigma in these rough economic times for the sole purpose that they show minimal signs of slowing down. Mickey Mouse has his hands dipped into everything and from an investor’s standpoint that’s a good thing because that equals diversification, and in turn, diversification lowers risk. The Disney Company operates in several areas of the media and entertainment industry. They have recently acquired Pixar, which consistently provides box office record sales with their animated films. Along media entertainment lines, Disney also operates dominant media channels ABC and ESPN. These are two channels that carry with them a strong loyal following. Sports have always been America’s past time and it’s unlikely to see them ever declining or the viewership that goes along with it. People have always poured capital into sports and will continue to for many centuries to come. Aside from Disney’s ventures, investors focus and confidence should be in the trademark of Disney. Characters such as Mickey Mouse and Buzz Light-year are icons that will never be lost in the pages of time. Kids and adults alike will always want to participate in the next big thing the company has to offer and these kinds of expectations will always lead to Disney having a stable stock price and even unstable in the positive manner because the growth potential is limitless for this company. You can see that limitless with the many franchises...
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...Disney is very creative man to be known for following his dreams and visions. To continue, the Walt Disney Company started in 1923 in the rear of a small office occupied by Holly-Vermont Realty in Los Angeles. It was there that Walt Disney, and his brother Roy, produced a series of short live-action/animated films collectively called the ALICE COMEDIES. The rent was a mere $10 a month. Within four months, the ever-growing staff moved next door to larger facilities, where the sign on the window read "Disney Bros. Studio." A year later, in 1925, the Disney’s made a deposit on a Hyperion Avenue lot in the Silver Lake district of Los Angeles. Construction began on the new studio shortly thereafter. During the next 14 years, many changes took place at the Disney studio: Mickey Mouse was "born" in 1928, followed by Pluto, Goofy, Donald Duck, and the rest of the Disney gang. Furthermore, in 1937, Disney's innovative first full length animated feature, snow white and the seven dwarfs, was released to critical acclaim and worldwide success. In order to expand and meet the expectations of his audience, Walt saw a need to increase the size of his studio. With profits from snow white, he made a deposit on 51 acres of land in Burbank and began designing a modern studio specifically for the purpose of making animated films. Walt was personally involved with all aspects of designing the studio. From the layout of the buildings to design of the animators' chairs, nothing was left to chance....
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... Financial Analysis of Walt Disney Company Brittany ACC205 Professor 17 June 2013 Throughout this paper you as my reader are going to learn about my company, what they are all about including any type of competition they may be facing. You are also going to view the financial analysis of Walt Disney Co. which will include a horizontal analysis from three consecutive years, along with a ratio analysis which will be going over the current ratio, quick ratio and the cash to current liabilities ratio from a two year-period. First off let’s discuss what a horizontal analysis is before examining the analysis of Walt Disney Co. According to our text, “a horizontal analysis can be used to compare data from within two or more periods, side by side. In other words, it is intended to show the change in certain accounts from two separate accounting periods”(Walther, 2012). A horizontal analysis is good for investors, so they can look at the companies financial standing and see how they are doing when it comes to their income, and whether or not they are worth investing into as a company. This sort of analysis is very vital when it comes to investors, it should not be the answer to their decision on whether or not they should invest in a company, but it should give them some insight as to who well a company is doing financially. When it comes to Walt Disney Co, we are going to get some background information about this company, and than we will examine the...
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...The Walt Disn ey Compan y Successful Management Practices Prepared for: Professor Jessie Richards Prepared by: Alli Hock Date: April 18, 2012 2 Table Of Contents EXECUTIVE SUMMARY……………………………………………………………3 INTRODUCTION……………………………………………………………….…….3 BACKGROUND…………………………………………………..……………….....4 Biography………………………………………….…………………….4 Beginning Of Disney Bros. Studios...…………………………………..5 Development Of Management Style……………..……………….........5 The Dreamer………………………………………………………………....5 The Realist……………………………………………………………….…..5 The Spoiler…………………………………………………………………...6 ANALYSIS………………………………………………….……………….….…….6 Original Company Values………….…………………………………..6 Hiring The Best For The Job……………………………………………...6 Talent Within The Organization….…………………………………….…6 Exceeding Customer Expectations…..………………………………..…7 The Interview Process…………….…………………………………...7 Internship Program………………..…………………………………...7 Attitude…………………………..……………………………………..…. 8 Drawbacks to Selection Standards….……………………………..…...8 Employee Training Process…...………………………………….…...8 Figure 1-1. A Balanced Approach to Employment..……………..…….8 Disney Training Programs…………………………………….....…….9 Attention To Detail…………………………………………………...……9 Training Program Downside…………………………………..………….9 Figure 1-2. Disney Manhole Cover………………………………10 Creating Employee Environment……………………………….……..10 Being Involved At All Levels……………………………...…….……..11 Effects Of Management Focus…………………………..……..………..11 Ensuring Job Significance…………..…………………………………11 ...
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...Strategic Initiative Paper Fin/370 March 6, 2013 Strategic Initiative Paper Disney is always looking for opportunities to complement their operations in theme parks as well as movie production. This article will discuss Disney’s acquisition of Lucasfilm, a strategic planning initiative released in Disney’s 2012 annual report. The article will delve into how this acquisition affects the Disney’s financial planning; that is, how this initiative affects costs, how will the initiative affect sales, and the risks associated with the initiative and financial effects they may have. What was the strategic and financial rationale for Disney’s purchase of Lucasfilm for $4 billion? As noted by Robert A. Iger, Chairman and Chief Executive Officer of the Walt Disney Company, the strategic acquisition of Lucasfilm provides tremendous new opportunities and creative potential across the entire company (The Walt Disney Company, 2012). The cornerstone of the purchase is Stars Wars franchise, which Disney has already announced plans to release a new feature film to continue the epic saga. Star Wars Episode 7 will be in theaters in 2015, with more feature films planned – along with television programming, games and merchandise, and an expanded Star Wars presence in our parks around the world (The Walt Disney Company, 2012). Disney CEO Robert Iger: "This is one of the great entertainment properties of all time, one of the best branded and one of the most valuable, and it's just fantastic for...
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...Week 8 Financial Analysis of The Walt Disney Company Executive Summary The following report provides an analysis of the current and prospective profitability, and financial stability of The Walt Disney Company (Dis). The Walt Disney Company, together with its subsidiaries, “is a diversified worldwide entertainment company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive” (The Walt Disney Company Annual Report, 2013). The report will additionally examine three areas of financial strength; liquidity, leverage debt to equity ratio, and sustainable growth as well as summary descriptions of each business segment in order to fully understand the company’s profitability in the short and long run. Organizational Overview The Walt Disney Company was founded in 1922, and has become a world leader in family entertainment. Disney is operating on a multinational level under the direction of CEO, Robert A. Iger. The Company and its affiliated companies have remained faithful to their commitment to produce unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling. Each division under The Walt Disney Company’s umbrella provides distinct products and services and caters to diverse market segments. All divisions, however, are united in their creative and imaginative efforts to “reach hundreds of millions of people worldwide and...
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...Republic of the Philippines Laguna State Polytechnic University Siniloan (Host) Campus Siniloan, Laguna Fiscal Year 2012 Annual Financial Report Reported By: Monina Krisha S. Penaso Robie Ann P. Flores * Business * The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive. For convenience, the terms “Company” and “we” are used to refer collectively to the parent company and the subsidiaries through which our various businesses are actually conducted. * Information on the Company’s revenues, operating income, and identifiable assets appears in Note 1 to the Consolidated Financial Statements included in Item 8 here of. The Company employed approximately 166,000 people as of September 29, 2012. * MEDIA NETWORK -The Media Networks segment includes international and domestic cable television networks, a domestic broadcast television network, television production operations, domestic and international television distribution, domestic television stations, domestic broadcast radio networks and stations, and publishing and digital operations. * Cable Networks - Cable networks derive a majority of their revenues from fees charged to cable, satellite and telecommunications service providers (Multi-channel Video Programming Distributors or MVPDs) for the right to deliver...
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...Finance Professor Gordon 5 March 2015 The Walt Disney Company The Walt Disney Company started back on October 16, 1923, with the company being known as The Disney Brothers Studio, when Walt signed a contract with M.J. Winkler to produce a series called “Alice Comedies”. From here Walt had created many cartoons such as Oswald the Lucky Rabbit, Trolley Troubles, and Steamboat Willie. Steamboat Willie being the very first Mickey Mouse cartoons and also the debut of Minnie Mouse. Then in January of 1930 was the debut of Mickey Mouse comic strip following their first full-color cartoon in July of 1932. Over the next couple of years we had the debut of Donald Duck and a full color Mickey Mouse cartoon as well. Then on December 21, 1937 Disney release their first feature-length animated film Snow White and the Seven Dwarfs. However it wasn’t until December 26, 1939 did the Disney Studio move to Burbank, California did things start to pick up. In 1940 Walt Disney Productions issued their first stock and released their classic film Fantasia and by October of 1949 the Walt Disney Music Company was formed. Over the next couple of years the Disney Company released other films, such as Peter Pan, and on July 17, 1955 Disneyland Park officially opened to the public. Unfortunately, Walt Disney passed away on December 15, 1966 and was taking over by his older brother Roy O. Disney, who changed the company name to The Walt Disney Company, until he also passed away on December 20, 1971...
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...Financial Statement Review Elisha Cervantes ACC 561 Seth Fargen November 16, 2015 Financial Statement Review The Walt Disney Company is the corporation chosen for the financial statement review. The Walt Disney Company (Disney) “operates through five business segments: Media Networks, Parks & Resorts, Studio Entertainment, Consumer Products and Interactive Media” (Forbes, 2015, p. 1). These segments include television and cable networks, radio networks, Resorts, motion picture studios, and retail stores (Forbes, 2015). Walt Disney is one of the largest corporations and brands in the world. Net Income Walt Disney reported a net income of $8,004 million in 2014 and net income of $6,636 million in 2013 (The Walt Disney Company, 2014). The net income increased in 2014 compared to the net income in 2013. Investors of Walt Disney found the increase in net income important because it shows Walt Disney is increasing profits by making positive decisions for the company. Money-zine.com states, “Perhaps the single most important measure of a company's profitability is net income. That's because generating profits is the most important responsibility that for-profit companies have to their shareholders” (Money-zine.com, 2015, p. 1). Stakeholder’s Equity The ending balance of stockholders’ equity for Walt Disney in 2014 was $44,598 million. Labor unions are interested in the stockholders’ equity to sponsor "proposals that would increase their negotiating leverage...
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...SUPPLY AND DEMAND The demand for the Disney Company is ever increasing based on the sales figures in 2014. Disney earned revenues of $40,246 million which represents an increase of 7% compared to 2013. The net income gained 8% to $8,004 million and the earnings per share for the year 2014 increased 8% to $4.31 (Disney Annual. Report, 2014). Disney’s profits amount to $5.6 billion with a market cap of $179.5 billion, making Disney an extremely valuable company. At the moment Disney has approximately 180,000 employees around the world (Forbes). The parks and resorts segment was one of the main growth drivers in 2014: they contributed more than 31% ($14.1 billion) to the overall company revenues and 21% to the segment operating income. The revenues...
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...Pixar Animations MBA 615 Mickey Langford/Kimberly Horne Spring 2013 Mickey Langford Pixar Animations is our company of choice for this case study analysis. In 2006, Walt Disney acquired Pixar, but before we get to all of that, let us start at the beginning. Before Pixar, there was Lucas Films. George Lucas, of Lucas Films, decided in 1979 to upgrade their computer division (Animations, 2012). Lucas had a desire to see how far they could take computer graphics within the film industry. Lucas Films succeeded by creating Andre & Wally B., in 1984 (Animations, 2012). Andre & Wally B. - First Ever Pixar Short Movie - The Adventures of André and Wally B. [1984 HD] - YouTube, was the first ever computer-generated imagery short movie (Movies, 2009). This was the foundational establishment in the film industry that Steve Jobs was seeking. In 1986, Jobs purchased the Computer Division from Lucas Films and named it Pixar Animations Studios. Walt Disney and Pixar Animation agreed to do a number of films together, the first being Toy Story which was a huge success. The movie debut on November 22, 1995 grossed $192 million domestically and $362 million worldwide (Animations, 2012). Listed below is a table of the gross amounts that Disney/Pixar movies have made: Released | Movie Name | 1st Weekend | US Gross | Worldwide Gross | Budget | 11/22/1995 | Toy Story | $29,140,617 | $191,796,233 | $361,948,825 | $30,000,000 | 11/20/1998 | A Bug's Life | $291,121...
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